Key Facts:

  • President Trump is imposing tariffs on all imported goods from Mexico beginning on June 10, 2019
  • The tariff rate will begin at 5% and increase to 10% on July 1, 15% on August 1, 20% on September 1, and 25% on October 1, 2019.
  • The tariffs will remain at 25% until “Mexico substantially stops the illegal inflow of aliens coming through its territory”

On May 30, 2019, President Trump announced that he would impose tariffs on all imported goods from Mexico beginning on June 10, 2019 at a 5% duty rate and increasing an additional 5% each month for three months.

The President cited to The International Emergency Economic Powers Act as his inherent authority to impose these broad tariffs.  However, it is unclear which section of the Act he is invoking these powers from. The President is also required to immediately transmit to Congress a report specifying the circumstances which necessitate such action and the reason for choosing this response.

The Mexican President, Andrés Manuel López Obrador said in a letter to President Trump on May 30, 2019 that Mexico would not be retaliating immediately with tariffs and would be engaging in negotiations with the U.S.

Husch Blackwell’s Trade and Supply Chain team will continue to monitor this situation closely. If you have any questions, please contact Jeffrey Neeley, Robert Stang, Cortney Morgan, Nithya Nagarajan, Beau Jackson, or Stephen Brophy.